According to a recent crypto news update, Christopher Waller, the Federal Reserve governor, warned those holding crypto assets, saying they would lose all their investments. He also stated that banks must do their needful purpose in guarding people against bad actors and about the risks involved to the financial system.
As we all have noticed crypto industry has been through a rough phase since 2022 and is still not completely recovered from it. Many investors have faced hefty losses, plus many of the exchanges, payment platforms, and lenders have become bankrupt. What can be the best example other than the FTX exchange that had a feud with Binance and became bankrupt followed by the arrest of its founder Sam Bankman-Fried?
Banks must help customers against risks: Christopher Waller
Now it has become the responsibility of U.S. regulators like the U.S. central bank in becoming a guiding force for people in making them aware of the fraudulent risks that are possible here. He further said that banks must also adhere to the needs of Know Your Customer and Anti-Money Laundering and must also keep a vigil eye on the customers’ business models and risk-management systems so that they do not deal with sudden difficult situations at the time of the crypto breakdown.
Apart from all these, Christopher Waller had strictly warned the crypto traders about no intrinsic value of these assets, and hence there is no wrong in saying that there is a high possible risk involved in cryptocurrencies. He also added that if people wish to hold crypto assets, then they can do it, but they must also be aware of the fact that cryptocurrency is prone to market volatility. Hence, if the price reaches zero, then they must be prepared to face losses. And then they cannot expect any taxpayers to help them with it.
If crypto assets are risky, then why do people invest in them?
There are possibilities for getting richer by doing crypto investments. And why not, when there are examples of people becoming richer with Bitcoin? Some of the popular names include Winklevoss Twins, Changpeng Zhao, Michael Saylor, Brian Armstrong, and Kane Ellis. But what seems greeny might also turn red.
What we meant to say it is not always to experience golden luck with cryptocurrency, you can also face massive losses because crypto is a volatile market where prices often swing up or down. Hence, you need to accept the bitter fact that crypto investments are not free from risk. But our intention is not at all to aloof yourself from it, or to discourage you from doing crypto investment. It is good when done properly under the advice of a crypto expert and also as a diversified portfolio.
Now the question is why do people do cryptocurrency investments when it is uncertain and carries risk? The answer is the robust growth of the crypto and blockchain industries, despite the risk factor.
So this is all that Christopher Waller had to say about crypto investment. He has advised people to be very careful of them. If it is done properly on the advice of a crypto expert, then it will yield fruitful results. Or else, taking a hasty step can land you in a problem, or can make you suffer hefty losses. So be very sure about it. Log on to Cryptoknowmics, to explore more topics including 4-digit ENS domain, 4-digit ENS floor price, etc.